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Response to RumorMillNews article "Leo Wanta Sends:"

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 ----- Original Message -----
From: DG
Sent: Thursday, April 23, 2009 4:45 PM
Subject: Response to RumorMillNews article "Leo Wanta Sends:"

April 23, 2009


Dear Fellow Patriots:


In regards to the above referenced article posted on rumormillnews by Patriot VKD, it may be argued that all recipients of TARP money proved that the mega-banks were insolvent?  Why take government funds if you are in good shape?  In my opinion, the Federal Reserve, more precisely Chairman Ben Shalom Bernanke committed an act of treason against the people of the United States of America when he and the Fed demanded that the Mega-banks not report the results of the ‘stress tests’ to their shareholders.  Think about that?  Bernanke as chairman does not have any authority to demand silence from the banks.  However that is exactly what he did.  So lets recap:


  1. Mega-banks needed TARP money to survive.  Banks such as, JP Morgan Chase, B of A, Citigroup received $25B per bank?  Only bankrupt banks need government bailouts?  Why are Canadian banks still in the green, but the mighty US banks insolvent?
  2. Starting in December 2007, the Fed created the Term Auction Facility to subsidize US banks?  In fact, over $1.5T have been loaned and never a word whether the receiving bank has ever repaid that 28-84 day loan?  Auctions every two weeks, started out with $50B.
  3. The US Government then feels that they should give the mega-banks a stress test?  Curious, why test something that you know is solvent?  You test mega-banks because there is a strong possibility that they are insolvent, simply put bankrupt.
  4. After the stress tests, Chairman Bernanke tells the mega-banks to not reveal the results until after first quarter results, in a pathetic attempt to delay the inevitable which is another major bank run, they make fascinating claims of profits?  Completely ignoring December 2008.
  5. Which brings us to the final nail in the coffin.  If you cannot win playing by your own rules, change the rules so you have another shot.  Last month the rules were changed by relaxing the way banks evaluate their own toxic assets.  The Financial Accounting Standards Board (FASB) simply allowed the banks to price their own assets.  How convenient.


These are five ways that prove the mega-banks are broke and for that matter the Federal Reserve.  Proof that the Federal Reserve is broke is through their endless ‘facilities’ (oddly enough ignoring the one facility of a global debt variety) and zero results.  I want to take a jab at former President George W. Bush?  Sir, you could have saved the Federal Reserve last year and walked out of DC a hero.  All you had to do is create ‘Energy’ bonds for the Alternative Energy sector, the world would have bought them with a vengeance and demanded more.  The Industrial Revolution would have paled in comparison.  Oh, I am sorry you did not have permission, Mr. ‘I am the decider’.  Now all parties will have to face the music.


Until Next Time,